Monday, October 26, 2020

Indonesia: Ex-Petral chief named corruption suspect

-

Amid maneuvers to weaken the Corruption Eradication Commission (KPK), the anticorruption body on Tuesday named former president director of now-defunct Pertamina Energy Trading Ltd (Petral) Bambang Irianto a corruption suspect in oil and gas business.

Bambang allegedly committed wrongdoings when he was the managing director of Pertamina Energy Service Pte Ltd (PES) between 2009 and 2013.

He allegedly received at least US$2.9 million in bribes between 2010 and 2013 through a bank account of a company that he established identified as SIAM.

“BTO [Bambang] is suspected of receiving $2.9 million from Kernel Oil in exchange for giving the company preferential treatment during the tender selection for the cargo of crude oil that will be purchased by PES or Pertamina,” KPK deputy chairman Laode M. Syarif told a press conference in Jakarta on Tuesday.

- Advertisement -

Laode said the case took a long time to progress, from investigation to identifying the suspect, because the flow of bribes transferred to Bambang’s account occurred in a number of countries.

“In order to avoid being suspected of bribing their way to winning raw oil purchases, Bambang instructed both Pertamina and PES to purchase oil from a Dubai-based oil company called Emirates National Oil Company [ENOC].

Related: Indonesia: KPK raid trade minister’s office in bribery investigation

On paper, it looked like Pertamina and PES had purchased oil from ENOC. On the contrary, the oil stock actually came from Kernel Oil, which then received payments that were addressed to ENOC.

Previously, then-commissioner and operational manager of PT Kernel Oil Indonesia, Simon Gunawan, was sentenced to 3 years in prison and a fine of Rp 200 million ($14,235) in 2013. 

- Advertisement -

The KPK advises multinational corporations operating in Indonesia to refrain from bribing government officials in order to win tender slots.

“We ask multinational companies operating in Indonesia to monitor their employees closely and ensure that they perform good corporate governance. The same goes for state-owned company [BUMN] officals,” said KPK spokesperson Febri Diansyah on Tuesday.

President Joko “Jokowi” Widodo liquidated Petral in 2015 as the company was reportedly used to enrich particular oil and gas business players including Bambang Irianto.

MUST READ

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

Texas attorney general Ken Paxton fires top aide who accused him of bribery

Lacey Mase, one of the top aides who accused Texas Attorney General Ken Paxton of crimes including bribery and abuse of office, has been fired, she told The...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World

Advertisement
Advertisement

Latest News

This Week

Crown Resorts chairman Helen Coonan admits casino ‘enabled’ money laundering

Crown Resorts chairman Helen Coonan has conceded the casino giant facilitated money laundering at its Melbourne casino, but blamed it on "ineptitude" rather than...

Former Malawi minister sentenced to six years in prison over passport corruption scandal

A court in Malawi’s capital Lilongwe on Thursday sentenced a former home minister to six years in prison after he was found guilty in...

US financial watchdog fines bitcoin mixer operator $60m for money laundering

The founder and operator of some of the first "mixing" services in crypto will have to cough up $60 million to United States regulators,...

UAE suspends licences of 200 law firms over anti-money laundering compliance

Practicing licences of 200 law firms in the UAE have been suspended for a month for not following the prescribed procedures to combat money...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks